HomeMy WebLinkAboutAgenda Report - December 6, 1989 (58)CITY
LODI
4 O i.
PUBLIC WORKS DEPARTMENT
PROJECT DATA
TO: City Council Originally Budgeted: 1989-90
Budaeted Fund: 10-503.07
FROM: City Manager Amount Budgeted: $20,000
1989-1990 Cost: $19,800
MEETING DATE: December 6, 1989
AGENDA TITLE: Lease/Purchase Agreement for New Street Sweeper
RECOMMENDED ACTI01i: That the City Council approve and authorize the
City Manager and City Clerk to execute a three year lease/purchase
agreement for a 1589 FMC Three -wheel High. Dump Sweeper with west;: -n
Traction of Union city, California.
BACKGROUND INFORMATION: In the 1989/90 budget, the lease/purchase of
a three -wheel sweeper was approved at an estimated cost of $20,000.
per year over a period of five years. The new sweeper will replace
the Street Division's two existing 1970 and 1976 three -wheel sweepers
During the past month, lease/purchase quotes were received from
three -wheel sweeper dealers on the West Coast. These were Ricker
Machinery, Oakland, California which sells Elgin Sweepers and Western
Traction Company, Union City, California which sells FMC Sweepers.
Following are base costs including tax.
NAME OF BIDDER TOTAL BID
Western Traction $79,581.25
Ricker Machinery $88,520.00
The Finance Department has determined that a three year lease would be
more advantageous to the City than a five year lease based on the
current interest rate. Based on a three year lease/purchase agreement
with Western Traction, the total aggregate cost woulr' be $89,098.92
with the first and last month payments ($2,474.97 per month) due upon
delivery. Therefore, both the Finance and Public Works Departments
recommend the lease/purchase of the Three-whoel High Dump Sweeper with
Western Tr ion.
6Jac L. Ronsko Robert H. Holm
Publ c Wcrks Director Finance Director
JL&/GB/sh
cc: Purchasing Officer
street Superintendent
APPROVrD: �j _ FILE NO.
__
H7 UMAS A. PETERSON, City -Manager
1189s.12 November 22 1989